The Government Actuary's Department (GAD) provides support to public sector bodies where a compulsory transfer of employment results in a change of pension scheme for staff.
Our involvement helps to protect the value of earned pension benefits. We can also assess whether the new pension scheme is more or less valuable than the old one and advise on any compensation that may be needed.
This can also include assessments of the impact of the 2015 (or transitional protection) remedy on that work and other specialist staff related advice.
Bulk transfer exercise
HM Revenue and Customs (HMRC) engaged GAD to assist them with a 'New Fair Deal' bulk transfer exercise covering the transfer of around 50 employees from a private sector pension scheme to the Civil Service Pension arrangements as a result of a contract re-let.
The bulk transfer terms proposed by the private sector scheme resulted in a potential pensions shortfall of £1.1 million that HMRC would have been liable for. However, the original outsourcing contract included an underpin to the bulk transfer terms on exit. GAD provided advice to HMRC on the actuarial implications of the underpin and briefed HMRC's lawyers to enable legal advice to be given.
Significant savings
After robust discussions with the private sector employer, HMRC's interpretation of the contract was accepted. This meant HMRC didn't have to meet the potential £1.1 million shortfall, realising a significant saving for the public purse.
At the end of the exercise, HMRC said:
"Excellent turnaround times, good practical advice, very engaging. Advice is clear and well-articulated to enable the customer to understand very difficult at times detail.
"GAD's experts are very helpful, and they give timely and valuable advice."
GAD supports public sector bodies where compulsory transfer of employment leads to staff changing pension schemes. We help protect the value of earned pension benefits.
